The stock market rally continued to gain momentum, with the S&P 500 and Nasdaq composite clearing their 50-day moving averages. China said it's "evaluating" U.S. trade talks, raising hopes for Trump tariff negotiations as port activity tumbles. Economic data was mixed, though the jobs report showed strength heading into tariffs.
Microsoft (MSFT) and Meta Platforms (META) beat views and guided higher. Amazon.com (AMZN) rose despite mixed guidance. Apple (AAPL) also beat, but retreated amid tariff concerns. There were some big earnings winners and losers. Treasury yields fell while crude oil sank to four-year lows.
The stock market powered higher, with the S&P 500 and Nasdaq moving above their 50-day lines. Investors took a benign view of Trump tariff news and economic data and cheered some earnings reports, notably Microsoft (MSFT) and Meta Platforms (META). Crude oil futures hit a four-year low.
The April jobs report was strong enough, with 177,000 new jobs and steady 4.2% unemployment, to push back market expectations for the Fed's next rate cut to July from June. That's despite a flat reading for the Fed's primary inflation gauge, the core PCE price index, in March. Yet a downward revision of a combined 48,000 new jobs in February and March completely offset April's outsize gain. The jobs report is based on a mid-month survey, so doesn't really show an impact from President Donald Trump's so-called reciprocal tariffs. Just like the 0.3% decline in Q1 GDP, it's probably wrong to put much weight on April's jobs report. Economic activity has been distorted by a surge in imports as businesses, and consumers to some extent, have tried to get ahead of Trump tariffs.
Microsoft (MSFT) crushed Wall Street's targets, with fiscal Q3 earnings up 18% while sales climbed 13% to $70.07 billion. Growth in cloud computing and artificial intelligence services fueled gains. For the June quarter, Microsoft guided to sales of $73.7 billion, above consensus. Shares gapped higher.
Meta Platforms (META) reported a 37% EPS gain while revenue rose 16% to $42.3 billion, both beating views. Daily active users grew 6%. The social media giant also guided slightly higher on Q2 revenue and raised capital spending targets. META stock popped on earnings, hitting resistance at key levels.
Amazon.com (AMZN) earnings surged 62% vs. a year earlier, easily beating consensus. Revenue climbed 9%, slightly topping but Amazon Web Services revenue slightly missed targets. The e-commerce and cloud-computing giant also guided lower on operating income for the current Q2. CEO Andy Jassy said he's "optimistic" that Amazon could emerge stronger from the tariff uncertainty. Shares fell Friday.
Apple (AAPL) beat estimates for its fiscal second quarter, with EPS up 8% and revenue rising 5% to $95.4 billion. Revenue guidance for the current quarter was roughly in line with views. CEO Tim Cook predicted $900 million in added costs to the June quarter from tariffs, assuming current rates and policies don't change. Apple upped its quarterly dividend by 4% and announced a new stock-buyback plan totaling up to $100 billion. AAPL stock fell.
Spotify Technology (SPOT) reported more subscribers than expected in the first quarter but badly missed on earnings and revenue in the period. The streaming music leader added 5 million premium subscribers, vs. views for 2 million, ending Q1 with 268 million worldwide. It also tallied 678 million monthly active users, just shy of Wall Street's target. Spotify earned the equivalent of $1.13 a share on revenue of $4.41 billion. But analysts had expected EPS of $2.49 on sales of $4.77 billion. Spotify guided slightly lower on Q2 revenue.
Howmet Aerospace (HWM) reported Q1 adjusted EPS up 51% vs. a year earlier, beating views. Revenue grew 6.5% to $1.94 billion, in line with forecasts. CEO John Plant said that the aerospace supplier is still seeing growth from original equipment customers and "healthy growth" in defense demand. Howmet also expects to pass on tariff-related costs to its customers. The company guided up on full-year EPS, reflecting higher margins, not revenue. Shares gapped up to a new high.
Cryptocurrencies saw an eventful week as bitcoin rallied above $97,400 to mark its highest level since late February, amid a market return to risk. SoFi Technologies (SOFI) plans to jump back into crypto while Morgan Stanley (MS) reportedly is looking to add crypto trading to E-Trade. Robinhood (HOOD) reported a 108% EPS spike while revenue swelled 50% to $927 million. Crypto trading revenue doubled, slightly beating, but down sharply from Q4. HOOD stock fell after earnings but later slashed losses. Big bitcoin holder Strategy (MSTR) reported a much-wider-than-expected loss while revenue fell 4% to $111.1 million, also missing estimates. The company reported a Q1 bitcoin gain of $4.8 billion, with a year-to-date total of $5.8 billion. Strategy hiked its bitcoin gain target to $15 billion from $10 billion. Shares rose amid bitcoin's rise.
Travel companies broadly managed to beat earnings estimates this past week despite shaky consumer confidence and weaker travel to the U.S. Royal Caribbean (RCL) topped earnings views with record bookings and hiked the midpoint of its earnings outlook above forecasts, though revenue missed. CEO Jason Liberty said that bookings and onboard spending show that consumers are still prioritizing experiences and planning to spend more on them this year. Cruises are also 20% cheaper than comparable vacations, making Royal "somewhat insulated" in case of an economic slowdown. Booking Holdings (BKNG) CEO Glenn Fogel said that travel sector weakness appears to be contained to the U.S., and he doesn't expect recent volatility to impact the company's long-term strategy. Hilton (HLT) also beat earnings estimates and lifted its EPS forecast for the year. CEO Chris Nassetta said that the underlying economy is "still really strong" but weighed down by uncertainty. Airbnb (ABNB) expects year-over-year nights and experiences bookings to "moderate" in Q2 due to "broader economic uncertainties" in the U.S. All four stocks rose, led by Booking.
Dow giant Visa (V) reported a 10% EPS gain while fiscal Q2 revenue rose 9% to $9.59 billion. CEO Ryan McInerney said "Consumer spending remained resilient, even with macroeconomic uncertainty." The Dow Jones payments giant projects low double-digit revenue growth for the full year, with earnings growth in the high teens. Rival Mastercard (MA) delivered a 13% EPS increase with revenue up 14% to $7.3 billion. Cross-border volume rose 15% for the period.
PayPal Holdings (PYPL) beat first-quarter earnings forecasts with a 23% rise but a 1% revenue rise to $7.79 billion fell short. Total payment volume climbed 3% to $417.2 billion, slightly missing. PayPal maintained full-year EPS guidance. Square-parent Block (XYZ) missed on the top and bottom lines. EPS climbed 19% while revenue fell 3% to $5.77 billion, amid slower bitcoin-related growth. Square lowered its gross profit guidance for the full year. Shift4 Payments (FOUR) earnings grew 13%, defying views for a decline, while revenue minus network fees rose 40% to $369 million, also topping. For Q2, Shift4 guided slightly higher on revenue. PYPL stock was little changed and Square-parent Block plunged. Shift4 jumped on earnings, but slashed weekly gains on a convertible preferred stock sale.
Pfizer (PFE) earnings grew 12%, beating views, as the drug giant says it's on track to deliver $4.5 billion in cost savings. Sales fell 8% to $13.72 billion, missing views due to expected changes in Medicare Part D. Pfizer retained its full-year outlook and says earnings are trending toward the higher end of its guidance. Shares rose, continuing a bounce from April's longtime lows. Eli Lilly (LLY) tumbled Thursday after cutting its full-year profit outlook. Lilly earnings rose 29%, beating. Revenue swelled 45% to $12.73 million, but would have missed without a one-time collaboration payment of $370 million from Boehringer Ingelheim. CVS Caremark also said Novo Nordisk (NVO) drug Wegovy is its preferred weight-loss fighter. This will start hurting sales of Lilly's Zepbound in July.
Fast-food giant McDonald's (MCD) on Thursday reported mixed quarterly results as U.S. same-store sales suffered their biggest decline since the beginning of the Covid pandemic. Shares were little changed near a buy point. Meanwhile, Chili's-operator Brinker International (EAT) reported better-than-expected fiscal Q3 2025 earnings and revenue. Comparable restaurant sales increased 28%, with Chili's seeing a 32% jump. But shares tumbled as investors worried about how restaurants will hold up in the current economic climate. Starbucks (SBUX) missed fiscal Q2 results, with U.S. comps down for a fifth straight quarter. CEO Brian Niccol said the results were "disappointing," but claimed "behind the scenes, we really are showing a lot of signs of progress."
General Motors (GM) and Stellantis (STLA) made changes to guidance this week as the automakers posted first-quarter results. Stellantis pulled its full-year earnings forecast due to "tariff-related uncertainties" after reporting Q1 revenue fell 14%. The parent of Chrysler, Fiat, Peugeot and more brands suspended U.S. imports of European vehicles and scaled back other shipments in response to President Donald Trump's 25% tariff on foreign-made autos. CFO Doug Ostermann said Stellantis is subject to "extreme uncertainties." Meanwhile, GM reported that it expects Trump's current tariffs to cost up to $5 billion and slashed full-year earnings targets, despite topping Q1 EPS views.
Exxon Mobil (XOM) earnings fell 14.5% while sales grew less than 1% to $83.13 billion. But despite pressure on prices and margins, the oil major said its "strategy remains unchanged." Chevron (CVX) earnings fell 26% with sales down 2% to $47.6 billion. The reports come as U.S. oil prices hit their lowest level in four years early Thursday, reflecting recession fears due to Trump tariffs as well as higher OPEC+ production. Exxon paid $4.3 billion in dividends and repurchased $4.8 billion in shares in Q1. Meanwhile, capital expenditures were $5.9 billion, also consistent with Exxon's target of $27 billion-$29 billion. Meanwhile, Chevron, in addition to returning $6.9 billion to shareholders, also acquired $2.2 billion of Hess (HES) stock in Q1. The company wrote Friday that this reflects "continuing confidence" that its pending Hess acquisition will go through.
Waymo and Toyota (TM) signed a preliminary agreement to explore developing autonomous vehicles as well as "personally owned vehicles." Waymo, part of Google-parent Alphabet (GOOGL), which has robotaxis in several U.S. cities, last year revealed plans to expand in its first international market, Tokyo. Also, Waymo said it will "incorporate" Toyota vehicles into its ride-hailing fleet.
GeneDx (WGS) crashed 43% Wednesday after the diagnostics player beat first-quarter sales by 10%, less than it has been topping views. Further, test volumes declined sequentially for the first time since GeneDx went public. But adjusted earnings of 28 cents a share beat forecasts and GeneDx raised its sales outlook for the year.
Oddity Tech (ODD) skyrocketed to a new high after it reported better-than-expected first-quarter results and raised full-year guidance. The Israel-based specialty cosmetics firm's Q1 EPS grew 13% while sales climbed 27% to $268.1 million.
Stride (LRN) topped fiscal Q3 EPS views while revenue rose nearly 18% to $613.4 million. The online education firm briefly broke out Wednesday on earnings before pulling back.
Super Micro Computer (SMCI) gave preliminary Q1 figures that were far below views, sending shares tumbling. The AI data-center specialist guided to EPS of 30 cents on sales of $4.55 billion, vs. consensus of 53 cents on sales of $5.38 billion.
Garmin (GRMN), a maker of electronic devices for fitness, navigation and outdoor recreation, beat sales estimates with an 11% gain to $1.54 billion. But a 13% EPS gain fell short.
Reddit (RDDT) crushed Q1 views with a per-share profit of 13 cents vs. views of a 2-cent gain and a year-earlier loss of $8.19. Revenue grew 61% to $392.4 million, easily beating. The social media play guided up for Q2. Shares soared Friday.
Take-Two Interactive (TTWO) delayed the release of its long-awaited Grand Theft Auto VI video game to 2026 from this year. TTWO stock plunged Friday, back below a buy point.
Caterpillar (CAT) earnings per share slid 24%, while Q1 revenue fell 10% to $14.2 billion. The earthmoving equipment heavyweight expects a $250 million to $350 million cost headwind from tariffs in Q2, but stuck to its full-year forecast for a slight sales decline.
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